The Expert Advisory Committee on the Assessment Rate of Liability Reserves in China’s life insurance industry has announced a new research value for the preset interest rate of ordinary life insurance products. The rate is now 2.13%, a drop of 37 basis points (bps) from the current preset rate. This marks the first time the gap has exceeded 25 bps, raising the possibility of changes in the market.
According to a report from National Business Daily, industry experts believe that if the research value in July stays below 2.25%, the preset interest rate for 2.5% products could be adjusted as early as September.
This potential rate cut would affect the return expectations for policyholders and may influence how insurers design and price their life insurance offerings in the near future.
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